Russia’s Oil Revenue Is Plummeting

As of January 2026, Russia's oil revenue, a crucial source of funding, is significantly declining due to increased global supply and Western sanctions related to the war in Ukraine. This has led to a nearly 25% drop in oil and gas revenue last year, forcing the Kremlin to raise taxes and increase debt to cover budget deficits. The economic strain is occurring as Russia engages in peace talks with Ukraine, mediated by the United States, in Abu Dhabi. While there is no immediate indication that economic pressures will alter President Putin's war strategy, the Russian population will likely bear a greater financial burden as the economy stagnates and the government's financial resources become limited. The situation is creating economic instability characterized by budget deficits, higher taxes, and inflation.

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